Tax Information:
The following bill was introduced to congress on May 25, 2011. If you support this measure please contact your local representative and let him/her know. Rep. Stark introduced it with the following:
Mr. Speaker, I rise today with my colleagues Mr. Polis (D-CO), Mr. Frank (D-MA), Mr. Rohrabacher (R-CA), and Mr. Paul (R-TX) to introduce the Small Business Tax Equity Act.
Our tax code currently undercuts legal medical marijuana dispensaries by preventing them from taking the full range of deductions allowed for other small businesses. While unfair to these small business owners, the tax code also punishes the thousands of patients who rely on them for safe, legal, reliable access to medical marijuana as recommended by a doctor.
The Small Business Tax Equity Act would create an exception to Internal Revenue Code Section 280E to allow businesses operating in accordance with state law to take tax deductions associated with the sale of medical marijuana. This legislation is one in a series of bills being introduced today that would help ensure the fair treatment of medical marijuana businesses and the patients they serve.
Forty years after the start of the War on Drugs, sixteen states and the District of Columbia now regulate and allow the sale of marijuana for medical purposes. Our tax laws have not kept pace with these changes in state law. My legislation would amend a portion of the Internal Revenue Code that was intended to prevent criminal drug dealers from claiming tax benefits. Under this bill, dispensaries operating legally under state law will no longer be prohibited from taking tax deductions and credits attributed to the sale of marijuana to patients.
Medical marijuana dispensaries operate legally in my home state and pay federal, state, and local taxes. California now collects over $100 million in state taxes annually from these small businesses. They should be able to claim the full range of benefits under the U.S. tax code just like other businesses that operate legally under state law.
I urge my colleagues to join us in support of fair tax treatment for the medical marijuana industry and to ensure safe access to the patients it serves.
H.R.1985 -- Small Business Tax Equity Act of 2011 (Introduced in House - IH)
112th CONGRESS-1st Session-H. R. 1985
To amend the Internal Revenue Code of 1986 to allow a deduction for expenses in connection with the trade or business of selling marijuana intended for patients for medical purposes pursuant to State law.
IN THE HOUSE OF REPRESENTATIVES
May 25, 2011
Mr. STARK (for himself, Mr. ROHRABACHER, Mr. POLIS, Mr. PAUL, and Mr. FRANK of Massachusetts) introduced the following bill; which was referred to the Committee on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to allow a deduction for expenses in connection with the trade or business of selling marijuana intended for patients for medical purposes pursuant to State law.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the `Small Business Tax Equity Act of 2011'.
SEC. 2. DEDUCTION ALLOWED FOR EXPENSES IN CONNECTION WITH SALES OF MARIJUANA.
(a) In General- Section 280E of the Internal Revenue Code of 1986 is amended--
(1) by striking `No deduction' and inserting `(a) IN GENERAL- No deduction', and
(2) by adding at the end the following new subsection:
`(b) Exception- Subsection (a) shall not apply to amounts paid or incurred in connection with the portion of the trade or business consisting of sales of marihuana (as defined by section 102(16) of the Controlled Substances Act) intended for patients for medical purposes pursuant to the law of a State.'.
(b) Effective Date- The amendments made by subsection (a) shall apply to amounts paid or incurred after the later of--
(1) the date of the enactment of this Act, or
(2) the date on which the State law referred to in section 280E(b) of the Internal Revenue Code of 1986 (as added by subsection (a)) is first effective.
